“Full-time employment has been growing at a three to four per cent clip for several months, mortgage interest rates remain at or near historic lows and the population base continues to expand.”

It says that should mean a return to “more balanced” real estate market conditions in Metro Vancouver as the current buyer’s market moderates.

Multi-family buildings are expected to account for 80 per cent of new units built this year, while single-family house starts are forecast to drop below 8,000 units for the first time since 2009.

The province’s economy is projected to grow at a rate of 2.3 per cent next year and the unemployment rate is to slip below seven per cent.

In the Fraser Valley real estate zone, which includes Surrey, White Rock and North Delta, the forecast calls for a 0.3 per cent drop in detached house prices to an average $600,000 in 2013, a 0.7 per cent drop in attached homes to $333,500 and a 1.4 per cent gain in apartments to $225,000.

It estimates overall average residential prices in the Fraser Valley will have fallen 3.1 per cent by the end of this year.

The report cautions that fluctuation mainly reflects changes in the mix of homes selling and that typical homes, tracked through benchmark prices, have shown “only modest change” since the end of 2009.

Sales are expected to rise 5.7 per cent next year after a more than 10 per cent drop in 2012.